Ambac Financial Group Confirms Secured Exposure to Pacific Gas & Electric.Business Editors NEW YORK--(BUSINESS WIRE)--April 6, 2001 Ambac Financial Group Ambac Financial Group (NYSE: ABK) is an American Insurer of bonds, including municipal bonds. Ambac Financial Group, Inc. (NYSE: ABK) is a holding company whose subsidiaries provide financial guarantee products and other financial services to clients in both , Inc. (Ambac) confirmed today that it has $68.7 million in secured insured net par exposure outstanding to Pacific Gas & Electric. These bonds are secured by a first mortgage lien. Pacific Gas & Electric (PG&E) filed today for Chapter 11 bankruptcy protection. Although PG&E has not previously missed a debt service payment on Ambac-insured bonds, interest payments due on secured Ambac-insured PG&E debt total approximately $4.7 million annually. No principal comes due on Ambac-insured bonds until a $1.4 million maturity in 2009. The remainder of the bonds mature between 2022-2026. "As Ambac has stated previously, the secured nature of this exposure, coupled with the essentiality of the services the company provides, cause us to be confident that the likelihood of any material permanent loss is remote," said Robert J. Genader, President. "However, to accommodate any possible disruption in debt service over the near-term, in December of 2000 Ambac reserved $5 million for California utility exposure," he continued. In December of 2000 Ambac also disclosed that it has $75.1 million in insured net par exposure outstanding to Southern California Edison Southern California Edison (or SCE Corp), the largest subsidiary of Edison International (NYSE: EIX), is the primary electricity supply company for much of Southern California. It provides 11 million people with electricity. . The bonds are also secured by a first mortgage or lien on substantially all of the property and franchises now owned by Southern California Edison. Ambac Financial Group, Inc., headquartered in New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. , is a holding company whose affiliates provide financial guarantees and financial services to clients in both the public and private sectors around the world. Ambac Assurance Corporation Ambac Assurance Corporation A subsidiary of publicly traded Ambac Financial Group that provides financial guarantees for municipal borrowers and for asset-backed and structured issues. is the principal operating subsidiary of Ambac Financial Group, Inc. Ambac Assurance, a leading guarantor of municipal and structured finance obligations, has earned triple-A ratings, the highest ratings available from Moody's Investors Service Moody's Investors Service A leading global credit rating, research and risk analysis firm. Moody's Investors Service A leading firm engaged in credit rating, risk analysis, and research of fixed-income securities and their issuers. , Inc., Standard & Poor's Ratings Services, Fitch, Inc. and Rating and Investment Information, Inc. Ambac Financial Group, Inc. common stock is listed on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. (ticker symbol ABK ABK Abkuerzung (German: Abbreviation) ABK Anybody Killa (musician) ABK Ahli Bank of Kuwait ABK American Bank of Kosovo ABK Aphakic Bullous Keratopathy (ophthalmology) ). |
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